Petrobras, Ecopetrol ordered to halt drilling natural gas well offshore Colombia

A Colombian judge ordered Ecopetrol SA and Petroleo Brasileiro SA to halt the drilling of an offshore gas well in the nation’s Caribbean waters after an Indigenous community sought legal protection.

The community in the area of Taganga, near the city of Santa Marta, claimed their consent should have been requested before the companies were allowed to drill the Uchuva-2 well, according to a copy of the document published Friday by Caracol Radio. Petrobras is the operator of the Tayrona block with a 44.4% stake and Ecopetrol has the remaining 55.6%.

The Colombian company is expected to publish a statement commenting on the decision. Petrobras didn’t immediately reply to a request for comment.

Set to face a shortfall of natural gas at the start of next year, Colombia’s hopes are riding on the future potential of its deepwater wells. Ecopetrol’s offshore chief, Elsa Jaimes, said in an interview last month that production from Caribbean waters could come online as early as 2029, depending on approvals from local communities and securing environmental licenses.

The judge’s ruling to halt the drilling of Uchuva-2, which began in June, isn’t the only setback Ecopetrol is facing.

Last month, Colombia’s environmental licensing authority suspended the process to allow drilling of a separate offshore oil well that would set a new world drilling record. The state energy company and Occidental Petroleum Corp. have said they plan to start drilling the Komodo-1 well later this year at a depth of roughly 3,900 m (nearly 13,000 ft).

The Uchuva-2 ruling also represents another major offshore exploration setback for Petrobras. In Brazil, it has been blocked from drilling at a key section of the Equatorial Margin due to so-called “environmental concerns.”

Ecopetrol’s first-quarter net profit came in under the forecast of 4.73 trillion pesos from analysts polled by LSEG.

Production in the first quarter rose to total 741,100 barrels of oil equivalent per day (boed), up 3.0% from 719,400 boed pumped during the first quarter of 2023.

The company raised its outlook for production this year to a range of 730,000 to 735,000 boed, up from a previous range of 725,000 to 730,000 boed.

Earlier this week, Ecopetrol told Reuters it was analyzing its potential participation in the Andean country’s first-ever offshore wind auction.

The government of President Gustavo Petro, Colombia’s first leftist leader, wants to wean the Andean country off its dependence on fossil fuels while transitioning to greener sources of energy and has not issued any new oil and gas licenses.

However, Ecopetrol is advancing talks with Colombia’s National Hydrocarbons Agency (ANH) over potential exploration and production opportunities, including three contracts currently under technical evaluation in the Magdalena Medio region, Roa said.